(As of Nov. 4, 2022, to be updated in every 2Q/4Q financial result)
Oil Tanker
0 %
Chemical Tanker*²
23
%
LPG Carrier (VLGC)
16
%
LNG Carrier*³
0 %
Panamax and Small Handy
45
%
Dedicated Carriers
0
%
*¹ Contract on a per-voyage basis. (Not long-term) *² Not including time charter and other vessels
*³ The calculation includes 1 owned vessel, 24 LNG carriers are jointly owned or involved in the portfolio companies
Chemical Tanker Market
($/MT)
($/MT)
for freight
for Bunker
200
1200
180 15kmt Arabian Gulf / Main Ports in Far East 15kmt Arabian Gulf / Rotterdam
VLSFO bunker price, Singapore
1000
160
140
800
120
100
600
80
400
60
40
200
20
0
0
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
(Source: Clarksons Research)
General relationship between spot freight rates for chemical tankers and bunker prices
Impact of spot freight rates and bunker prices on profitability
(without hedging against the risk of bunker price fluctuations)
Bunker price
Profitability
【for example】
↗
→
When spot
Profitability will
improve if spot
freight rates
→
↗
freight rates
increase (↗)
increase and
↘
↗
bunker prices
decrease.
Bunker price
Profitability
【for example】
↗
↘
Profitability will
deteriorate if
When spot
spot freight
rates fall and
freight rates
→
↘
bunker prices
decrease (↘)
increase.
↘
→
*However, the figures may not necessarily be as shown in the above table due to the time lag between refueling and consumption, and the range of increase/decrease in freight and bunker oil prices, respectively.
Spot freight rates include fuel costs. Basically, when fuel oil prices rise (fall), freight rates also rise (fall), but there may be some time lag.
1
VLGC Market
($/tonne)
($,000/month)
for spot rate
for TCE Earnings/TC rate
200
5,000
LPG Spot Rate 46,200mt Gulf - Japan
180
4,500
VLGC TCE Earnings Ras Tanura-Chiba
160
4,000
84K CBM LPG 12 Month Timecharter Rate
140
3,500
120
3,000
100
2,500
80
2,000
60
1,500
40
1,000
20
500
0
0
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
(Source: Clarksons Research)
2
Dry Bulk Carrier Market
US$/DAY
100,000
Capesize 180,000DWT
90,000
(Average of 4 trip charter routes)
80,000
Panamax 82,000DWT
(Average of 4 trip charter routes)
70,000
Handysize 38,000DWT
(Average of 6 trip charter routes)
60,000
50,000
40,000
30,000
20,000
10,000
0
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
(Source: Clarksons Research)
3
Glossary
Contract Type
COA(Contract of Affreightment)
Spot Contract
A contract to transport a specific cargo with specific freight rates for
Contract on a per-voyage basis.
a certain period of time, without specifying the vessel to be used.
(Not long-term)
TC (Time Charter Contract)
A contract to charter a vessel for a certain period of time. The term can be as short as a few months or as long as a decade or more. The charterer (operator) pays a certain amount of charter fee to the shipowner (owner).
The shipowner is responsible for ship management, including repairs and crewing.
Other
Product Tunker / Chemical Tanker (Relationship between them)
Chemical tankers mainly carry liquid chemical products (methanol, alcohol and other cargoes), while product tankers mainly carry petroleum products (gasoline, naphtha and other cargoes). Product tankers can carry some liquid chemical products. Therefore, when the cargoes (petroleum products) carried by product tankers decrease, the product tankers flow into the chemical tanker market. An increase in the fleef of overall chemical tanker market may lead to the market conditions to decline.
For more information on chemical tankers, please see "What is a Chemical Tanker" on our website.
Bunker (Fuel Oil) Price
【Type】 ① High Sulfer Fuel Oil(HSFO):Low cost but high environmental impact.
②Very Low Sulfer Fuel Oil(VLSFO):VLSFO must be used for non-scrubber equipped vessels due to
the enforcement of the sulfur limits of the MARPOL Convention 2020; it is more costly than HSFO, but has a lower environmental impact.
【General relationship between spot freight rates for chemical tankers and bunker prices】
Spot freight rates include fuel costs. Basically, when fuel oil prices rise (fall), freight rates also rise (fall), but there may be some time lag.
Docking
Vessels enter dock for periodic inspections and repair work.
Periodic inspections are every 5 years and interim inspections every 2-3 years.
Provision for special repairs
Allowance recorded for docking. (tens to hundreds of millions of yen)
4
Attachments
Original Link
Original Document
Permalink
Disclaimer
Iino Kaiun Kaisha Ltd. published this content on 16 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 January 2023 08:19:05 UTC.
IINO KAIUN KAISHA, LTD. is a company primarily engaged in the shipping business. The Company operates through three business segments. The Overseas Shipping segment is engaged in the shipping, ship leasing, ship chartering and management, as well as ship brokerage business, the sale of ship equipment and the operation of ship agencies. The Coastal Shipping segment is engaged in the shipping, ship leasing, ship chartering and management. The Real Estate segment is engaged in the leasing and management of buildings, warehousing business and real estate related business.